Baseball and Retirement Planning

Today’s Prep:

America’s pastime has been enjoyed by people of all ages for many, many years, but how much have you thought about baseball from a retirement planning perspective? Today we’ll explore the parallels between being successful in sport and finances.

Equipping Points:

Baseball is a game of numbers, strategy and patience. That’s what makes it so great in the eyes of many people and part of the reason why it became America’s pastime.

That’s also why it has a number of similarities to retirement planning. As we move into the summer and enjoy another baseball season, we wanted to dive into these parallels on the podcast and put a different spin on the planning conversation.

To start, think about the different types of baseball fans. Some people take a passive approach while others love to immerse their self into the numbers. It’s very similar to the people we work with in the financial world. You watch from a distance and just keep an eye on the high level information like scores and standings or you could really dive into the statistics and data and get highly involved in the day-to-day.

When you think about baseball, home runs are usually one the first things that come to mind. The best power hitters of all-time were also commonly known for their propensity to strikeout. Swinging for the fences can carry the highest reward but it also brings the biggest risk. That sounds pretty familiar with investing as well, right?

As for strategy, there’s been a movement over the past decade or two in baseball to focus more on data. You might have seen the movie Moneyball, which starred Brad Pitts and showed how the Oakland A’s made that shift in approach to much success. Financial planning is all about doing the math and making the numbers fit the goals, and that’s exactly what we do with clients every day.

If you’ve ever worked with us before, you probably know that we have a scorecard that gets prepared for each client. That’s a parallel to baseball that you might not find everywhere, but we try to present a plan in a very straightforward fashion. We want it to be easy to identify progress and results much like you’d find on a scorecard at a baseball game.

This episode will dive into all of this in more detail so check out the show and get a better idea of why baseball and retirement planning are so much alike.

Listen to the entire episode or click on the timestamps below to skip ahead to a particular financial opinion.

1:40 – Home runs

4:35 – Data and analytics

7:19 – Five-tool players

 

Today’s Takeaway:

If you’re swinging for the fences every time, you’re going to have a high level of strikeouts.

-Eric Peterson

Related Resources:

Unpopular Opinions In The Financial World

Financial Abbreviations, Explained

Can You DIY Financial Planning?

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Financial Wisdom from Mark Twain

June 13, 2024

In the latest episode of the Retirement Ready Podcast, Eric invites us to explore the timeless wisdom of Mark Twain and how it applies to modern financial planning. Mark Twain, known for his wit and keen observations, offers quotes that are surprisingly relevant to today’s financial landscape. Eric takes these quotes and translates them into practical advice for those planning their retirement.

Read More

Understanding Bonds in Today’s Market

June 6, 2024

Are bonds really the safe investment we’ve always been told they are? What percentage of assets should a retiree or pre-retiree hold in bonds? In today’s episode, Eric addresses some of his most frequently asked questions about the world of bonds…

Read More

Understanding Your Financial Statements

May 30, 2024

Financial statements can often feel like a foreign language, filled with jargon and numbers that seem to have little relevance to your everyday life. However, understanding these documents is crucial for effective retirement planning. In the latest episode of the Retirement Ready Podcast, Eric breaks down the essentials of reading and interpreting your financial statements.

Read More

From Graduation to Retirement

May 23, 2024

This one goes to the grads! Whether you know someone graduating high school, college, or even preschool, graduation marks a new stage and season in life. Similarly, retirement is a new chapter in life. It’s a time of change, celebration, and sometimes, uncertainty. On today’s show, we talk through the similarities between leaving school and entering retirement.

Read More

401(k) Mistakes

May 16, 2024

Your 401(k) likely plays a major role in your retirement savings. That’s why it’s important that it’s set up and functions in the way that’s most beneficial to you. Following our last podcast about beneficiary mistakes, now we focus on common mistakes people make with their 401(k).

Read More

Beneficiary Mistakes

May 9, 2024

In this episode of the Retirement Ready Podcast, Eric guides us through the critical yet often overlooked details of beneficiary designations. Learn the simple yet vital steps to prevent beneficiary blunders that could lead to unnecessary headaches for your heirs. Eric calls these errors “low hanging fruit” because they’re easy to fix yet can save your family from future heartache.

Read More

How Emotions Can Impact Your Retirement Plan

May 2, 2024

Dive into the world of financial emotions in this episode with Eric Peterson. Discover how greed, fear, hope, and pride can make or break your investment strategy. Eric unravels the complexities of managing emotions to ensure a secure and enjoyable retirement.

Read More

Retirement Planning Statistics

April 25, 2024

Retirement is closer than you think, but are you ready? With a staggering number of people lacking confidence in their retirement savings, Eric shares the misconceptions people have and what mistakes can derail someone’s financial future. Many people feel inadequate when it comes to what they have saved in their nest egg, uninformed about the pitfalls of target date funds, and unprepared about the reality of leaving the workforce earlier than expected.

Read More

Mailbag: Should I Fire My Broker?

April 18, 2024

Navigating life’s financial crossroads can be tricky, especially when it involves your financial future. In this episode of Retirement Ready, Eric addresses these complex issues head-on. How do you best evaluate your broker and your investment performance against the S&P 500? Eric says a lot of that comes down to setting expectations and understanding the risks. Then, Holly wants to know what to consider before making a midlife career change.

Read More

Putting It Off

April 11, 2024

We are all guilty of procrastinating from time to time. Financially speaking, though, this can get you into a lot of trouble. Let’s talk about the areas where it might feel better to kick the can down the road.

Read More

Leave a Comment